Following the release of a bearish Cattle on Feed report, the market traded mostly lower over the week. Cash trade sold steady to lower from a week earlier, and numbers were mostly red on the board.
Live cattle futures were mixed over the week. The February contract lost $1 to close at $183.50, and the April contract gained just over a dollar to close at $186.55.
Cash trade through Thursday totaled about 49,000 head. Live steers sold from $181-184, and dressed steers sold for $290.
“The negotiated fed cattle trade commended yesterday at generally steady money in the South and thus far today, northern cattle feeders are passing mostly steady bids, though $183.50 is being passed in western Nebraska,” wrote Cassie Fish, market analyst, in The Beef. “When it’s all said and done it feels like this week’s average will be maybe $0.50/cwt higher than a week ago, which would push it just over $183.”
Cash trade for the week ending Feb. 25 totaled 72,872 head. Live steers averaged $182.96, and dressed steers averaged $291.57.
The national weekly direct beef type price distribution for the week of Feb. 19-26 was the following on a live basis:
• Negotiated purchases: $182.86.
• Formula net purchases: $183.73.
• Forward contract net purchases: $190.77.
• Negotiated grid net purchases: $184.07.
On a dressed basis:
• Negotiated purchases: $291.46.
• Formula net purchases: $290.98.
• Forward contract net purchases: $295.96.
• Negotiated grid net purchases: $287.61.
Slaughter through Thursday is estimated at 495,000 head, compared to 472,000 head a week earlier. Total slaughter for the week earlier is estimated at just 593,000 head. Actual slaughter for the week ending Feb. 17 was 608,466 head. The average steer dressed weight was 914 lbs., 2 lbs. higher than the prior week.
“This week’s estimated cattle slaughter is expected to be sub-600k head for the second week, though there is debate as to how low this week’s kill turns out to be,” Fish said. “Regardless, the production reduction has boosted boxed beef values contra-seasonally this entire month and ultimately, the Choice cutout has rallied $10/cwt.”
Boxed beef prices saw gains over the week. The Choice cutout was up over $4 to $304.20, and the Select cutout was up more than $8 to $294.18.
In USDA’s latest Cattle on Feed report, cattle and calves on feed on Feb. 1 were up by 0.1% to 11.8 million head. Placements were 7% lower, and marketings were 0.1% higher. Other disappearance was 29% higher than the same time last year.
Feeder cattle
“The cash cattle market’s steady trade has left a sour taste in traders’ mouths and is affecting both the live cattle and feeder cattle markets,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Feeder cattle contracts were lower over the week. The March contract lost just over $3 to close at $249, and the April contract lost just under $3 to close at $253.72.
The CME Feeder Cattle Index gained $1.77 to close at $246.26.
Corn futures were back higher over the week, with the March contract up 9 cents to $4.15 and the May contract up 11 cents to $4.29.
“Demand out in the countryside remains incredibly strong, but from a technical standpoint the market is lagging this week and showing signs of exhaustion,” Stewart said.
Colorado: Winter Livestock in La Junta sold 2,408 head on Tuesday. Compared to the last auction, feeder steers under 550 lbs. sold $2-14 higher. Steers over 550 lbs. sold unevenly steady. Feeder heifers under 400 lbs. sold $15-20 higher. Heifers 400-650 lbs. sold $1-14 lower, while heifers over 650 lbs. sold unevenly steady. Benchmark steers averaging 740 lbs. sold between $241-255, averaging $253.10.
Iowa: Russell Livestock in Russell sold 4,616 head on Monday. Compared to the last auction, steers sold mostly $3-14 lower, except for 800-850 lbs. steers selling $4 higher. Heifers sold steady to $13 higher. Benchmark steers averaging 726 lbs. sold between $240-273.25, averaging $262.93.
Kansas: Winter Livestock in Dodge City sold 3,032 head on Wednesday. Compared to the previous auction, feeder heifers over 600 lbs. sold $7-12 higher. Feeder steers 500-750 lbs. sold $10-20 higher and steers over 750 lbs. sold unevenly steady. Benchmark steers averaging 773 lbs. sold between $238-248, averaging $244.96.
Missouri: Joplin Regional Stockyards in Carthage sold 13,000 head on Monday. Compared to the prior week, feeder steers under 625 lbs. sold $3-10 higher with heavier weights selling steady. Feeder heifers under 625 lbs. sold $5-15 higher with heavier weights selling steady to $3 higher.
Nebraska: Tri-State Livestock in McCook sold 3,706 head on Monday. Compared to the last auction, steers less than 600 lbs. sold $7-10 lower and over 600 lbs. sold $5-10 higher. Heifers less than 650 lbs. sold $7-10 lower, and over 650 lbs. sold steady to $4 higher.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,400 head on Monday. Compared to a week earlier, feeder steers sold steady to $2 higher and over 850 lbs. sold up to $5 higher. Feeder heifers sold $2-4 higher. Steer and heifer calves sold mostly steady. Benchmark steers averaging 758 lbs. sold from $240-247, averaging $244.26.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 5,975 head on Monday. Compared to the previous auction, steers 500-550 lbs. were $4 to sharply higher, 600-650 lbs. sold $2-4 lower, 700-750 lbs. traded steady to $6 higher and 800-850 lbs. sold $5-10 higher. Heifers 450-500 lbs. sold $4-8 higher, 550-700 lbs. traded $2-5 lower, 750 lbs. sold $7 higher and 800-850 lbs. were $1-2 higher. Benchmark steers averaging 730 lbs. sold between $260-276, averaging $267.65.
Texas: Lonestar Stockyards in Wildorado sold 1,350 head on Tuesday. Compared to the last auction, feeder steers traded mostly $1-7 higher. Feeder heifers traded steady to $6 lower. There were not enough comparable sales of steer and heifer calves for a market trend. Benchmark steers averaging 786 lbs. sold between $249-249.50, averaging $249.20. — Anna Miller, WLJ managing editor
